Top 10 trends in luxury: trivergence is especially important

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Tammy Smulders of SCB Partners and Havas LuxHub outlined the 10 key trends in luxury retail including how to best research this consumer at the recent MRS Luxury Research 2015 conference in London:

  1. The ‘trivergence’ of luxury: consumer needs encompass convenience, information and entertainment. Luxury brands must develop strategies to service all three.
  2. Hunt for new markets: as China and Russia’s growth fades, markets such as Nigeria represent most opportunity
  3. Tribalization: There is no one type of luxury consumer. To use the term ‘luxury consumer’ suggests one language, one aesthetic, one set of values. Potential segments include: the ‘cultural tribe’, the ‘country set’ and the ‘self-made.’
  4. ‘Know I know’: This is a shift from ‘show I know’; i.e. a move away from super brands to niche brands but differs by market. Chinese consumers prefer widely-known brands, the Spanish prefer niche brands.
  5. On sale – for the regular price: In the US, 67% of luxury purchases are made at a discount. This figure is 45% in the UK.
  6. The HNWM (high net worth millennial): In China, 80% of luxury buyers are under 45. In the US this figure is 30%.
  7. The power of travel: 55% of luxury goods purchases in the UK are made by international visitors. This rises to 60% in France.
  8. The editorial storefront: The opportunity for readers to shop directly from magazine editorial could change the luxury online retail landscape.
  9. Personalized storytelling: The rise of social media can take away the element of surprise so brands must raise the bar. Customers will promote brands if they have an exceptional/ personalized experience
  10. Retailer-led communities: Finding like-minded people and bringing them together can positively affect loyalty. Conducting research in social settings or using retail communities to recruit respondents can tap into this trend.

Complete post from research-live.com, here.

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